The way to fix this is by design: to have a government small enough that buying it wouldn’t bring you advantages comparable to succeeding in the free market.

Most people disagree with that and seem to think it’s possible to have angels from heaven running the government machine. The thing is that even if you manage that, it’s bound to go wrong at some future election.

The problem will always be that the profit motive is an engine that chews up the weak and the helpless, and as a moral society we want to limit these kind of behaviors, both by local gangs, and by massive corporations. Government is one way to do this. I agree that government should be more limited in some way. I think that the solution will be to empower local government, and the yoke the power of the federal fiat currency to local authority.